Church of England: don't use credit cards this Christmas

The Church of England has told shoppers not to use credit cards this Christmas
if they want to avoid a "terrible New Year".

The Church has broadened its Christmas message this year, by looking beyond the meaning of the Nativity to give advice to consumers on the high street.

Using cash rather than credit cards will help shoppers budget properly and avoid going into debt, the Church said. "Whether you spend £10 or a £1,000 on a credit card it's one slip and one signature. But with cash you really feel the difference."

The advice is given in a three-part videocast – three minute broadcasts shown on the internet – presented by Dr John Preston, the Church's National Stewardship Officer, entitled Wishing You an Affordable Christmas.

"With credit cards it is easy to get into serious levels of debt, and one of the big challenges is how to stop a great Christmas becoming a terrible New Year," he said.

The advice came as retailers intensified their pre-Christmas discounting to attract recession-hit shoppers. Debenhams announced it was holding a sale with discounts equating to £250 million, one of many high street stores responding to a major supermarket price cutting.

According to the consultancy firm PricewaterhouseCoopers, 52 per cent of all retailers were offering promotions or discounts last weekend – the same amount as a year ago. Last year retailers and departments stores panicked in the run-up to Christmas, holding a record amount of sales in late November and December, fearing shoppers drastically cut back on their spending.

The British Retail Consortium (BRC), which predicts that this year will be slightly less dire for shopkeepers, was not impressed by the Church of England's consumer advice.

Richard Dodd, at the BRC, said: "It is wrong to demonise those who want to borrow. Yes, shoppers should not borrow money they can't afford to pay back, but credit is an important device to spread the cost of a range of needs and wants, at anytime, including at Christmas."

He also pointed out that during the recession shoppers had responded by spending less on credit cards and buying more with cash, as they budgeted wisely, "despite the impression of consumers borrowing irresponsibly given by some quarters".

While this is the first time that the Church has branched out into internet videos, it is not the first time it has felt the need to give consumer advice.

Last year the Bishop of Reading, the Right Reverend Stephen Cottrell, said people should "prune their Christmas card list" and only send a few to those they really loved to help save the environment and take the stress out of Christmas.